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What age will you pay your mortgage off?

Discussion in 'Serious' started by Mephestic, 8 Jan 2015.

  1. Mephestic

    Mephestic What's a Dremel?

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    Just curious really in terms of how people compare.

    When I took out my mortgage it was for 25 years and I would have been 50 years old by the time it was paid off - how do you compare?

    I've started to pay this off sooner however adding little bits every month.

    Also another question - once its paid - What will you do with the disposable income?

    For me - Keep I'll toying in various ventures ; I've started one business which worked out well and I'm keen to toy with the extra capital in other markets...possibly real estate?

    What about you?
     
  2. Jumeira_Johnny

    Jumeira_Johnny 16032 - High plains drifter

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    I never intend to own a house long enough to pay it off. We usually get 30 year fixed rate for that reason.

    The concept of owning a house long enough to pay it off is hard for me to grasp.
     
  3. andrew8200m

    andrew8200m Modder

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    A mortgage is transferrable so if I was to take a term on a mortgage of 30 years and live there for 5 and then move on for example, the next mortgage would be for 25 years regardless of the payments and then rinse repeat.

    Back to the OP.

    I have 30 years which would put me at 52. However after the wedding (may) the money saved for that will then be saved to offset the mortgage which in theory could have it paid off by the time I am 37, half that of the original.

    From that point on the "extra" will be used to buy smaller properties that could be rented out to students and then sold after a few years when they have earnt enough or are looking to potentially leave at a break even point (market drops/flips).

    Currently there are not enough houses and I expect that to be the same for some time to come given the vast birthing rate some women seem to harness in the UK at present.

    The government should start providing TVs as itll cost less in the long run than paying for more childrens educations (or lack of as I am increasingly starting to see).
    #megaderail
     
    Noob? likes this.
  4. Jumeira_Johnny

    Jumeira_Johnny 16032 - High plains drifter

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    Having bought and sold 3 houses in the last 4 years I can tell you that, in the US, this is not the case. I'm not saying you're wrong, but it's not an option here. Nor do I think it's a good idea.
     
  5. andrew8200m

    andrew8200m Modder

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    You get the choice to just sit on the profit if you wish but most would reinvest and you would end up with technically a new mortgage for the new house but against the same account on terms discussed by yourself and the bank prior to the purchase of the new house.

    owning the house in the UK is a good idea as renting is just as expensive if not more in most cases than buying and once you retire, retirement funds usually work out massively less than the equivalent of being paid the same wage year in year out for the rest of your life, in most cases around 6x times and this may even fall to infinitely less if the government rids the pension schemes.
     
  6. 13eightyfour

    13eightyfour Formerly Titanium Angel

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    Mine will be clear when I'm 53, currently 30. Although last year I put enough money into a business venture that could have cleared it easily. Now that the business is up and running I'd like to get the mortgage paid off within 5 years, but more likely we'll move to a bigger place with a bit of land and just have a smaller overall mortgage.
     
  7. eddie_dane

    eddie_dane Used to mod pc's now I mod houses

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    I sold my last house and paid for our current one in cash with the proceeds so I have no mortgage. It's a real fixer-upper though. I don't intend on ever having a mortgage again. (I'm 44).
     
  8. Teelzebub

    Teelzebub Up yours GOD,Whats best served cold

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    Never needed a mortgage always paid cash, sold my last one in London and bought 3 up here for cash lived in this one, rented 2 of them out for 5 years then sold 2 for 3 x the price I paid for them :thumb:
     
  9. GuilleAcoustic

    GuilleAcoustic Ook ? Ook !

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    I'm a 34yo old engineer in the bank industry, expert in my domain ... and thinking about buying an appartment gives me goose bump, not even talking about a house. Why ? Because the activity in only in Paris, price got multiplied by almost 5 in 10 years (thanks to people willing to make huge benefice in small amount of time) and I have no prior possession to sell to buy my living place.

    I'm already 1h30 away from my job and I'd need a 25year mortgage to buy a 70m² appartment. With 2 kids, i can't go too small.
     
  10. Jumeira_Johnny

    Jumeira_Johnny 16032 - High plains drifter

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    Dat electrician tho.
     
  11. wyx087

    wyx087 Homeworld 3 is happening!!

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    Never. Buy-to-let interest-only. :p

    In all seriousness, We do plan to put some spare cash into the mortgage over time. But I've no solid plan to pay it off completely. At the same time, we'll be saving up. Hopefully add another house to our portfolio before 50. (27 now).

    But then, that's with our current situation. I've been told multiple times children are a money pit.......
     
  12. Sp!

    Sp! Minimodder

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    I think I'll be 52.... but that's on the assumption that I don't have to remortgage in the mean time. it'll also be around when my son turns 18 so hopefully any disposable income will go to sending him to Uni.
     
  13. marlowdrummer

    marlowdrummer Minimodder

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    Officially, 68, but I intend to have it paid off by 55 or earlier. Currently 43.
    This is my second mortgage, first one for a flat was paid off when I was 38. Lived there for a while then sold it and used the money as deposit for a proper house.
     
  14. eddie_dane

    eddie_dane Used to mod pc's now I mod houses

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    You should see my ceramic tiler...:thumb:
     
  15. Xir

    Xir Minimodder

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    Ummm...I saved up for 14 years while paying rent (I moved houses a lot, and buying and selling in eastern Germany isn't something that goes quickly and rents are cheap), and then payed nearly in full last year.
    I intend to settle my dept (no, it's not a mortgage, the amount was too low) this year. So 41.

    I could pay it off now, but I've got the garden to invest in.
    It's a paved over concrete silo and manure-pond at the moment, so it's going to be a bit of work.
     
  16. Landy_Ed

    Landy_Ed Combat Novice

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    I'm in a similar position to marlowdrummer.
     
  17. Mister_Tad

    Mister_Tad Will work for nuts Super Moderator

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    No "plans" to pay off by a certain point, though the bonus element of my job is paid monthly and is wildly variable (e.g. between 20% up to around 200% of my basic pay), so chunks get paid off as and when.

    Assuming we stay put for at least 10 years (which is the current thinking), I hope to have the current mortgage paid off by 40. If I'm able to re-mortgage at any point and secure a rate where early redemption makes little sense, however, then quite happy sticking with the mortgage until it no longer makes sense to do so.
     
    Last edited: 12 Jan 2015
  18. KayinBlack

    KayinBlack Currently Rebuilding

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    Paid cash, no intent to move currently. Currently 33.
     
  19. GuilleAcoustic

    GuilleAcoustic Ook ? Ook !

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    Cash, at 33 ... that's depressing. What are the house/appartment price vs average wage like ? Prices are so not correlated to salary here in France.
     
  20. Xir

    Xir Minimodder

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    Guille: Maybe it's one of those american houses where after a storm only the chimney ist left standing as the rest was cardboard to begin with? :D
     

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